Archive for the 'Analysis' Category


Is Streaming the Next Big Thing? – The Labels’ Perspective

The Beggars Group chairman, Martin Mills, recently told the Guardian that “(…) 22% of the label group’s digital revenues came from streaming – and that the majority of its artists earn more now from track streams than track downloads” in 2012. Though the article does not report absolute figures, the revenue can be considered rather high with a roster including Adele, Jack White and The xx.

A member survey of the global rights agency Merlin representing more than 20,000 indie labels including Beggars Group/XL Recordings, Rough Trade, Naïve, Tommy Boy, Cooking Vinyl and Naxos unveils that “92% of respondents saw streaming and subscription revenues grow between 2011 and 2012, with a third enjoying increases of more than 100%” as recently reported by Musicweek. The same study shows that 24% of indies across the world and 30% of European indies generated more income from streaming than downloads in 2012.

These figures suggest that music streaming seems to be a promising revenue source for record labels. In the following the economic potential of music streaming and the underlying business model are analysed from the record labels’ perspective.

Continue reading ‘Is Streaming the Next Big Thing? – The Labels’ Perspective’


Is Streaming the Next Big Thing? – The Business Models of Music Streaming Services

The music streaming market is currently the most dynamic segment in the music industry. The market entry of Apple with iTunes Radio and Google with All Access underpin the relevance of music streaming. It is just a question of time when Amazon will announce the launch of its rumoured music streaming service. Google, Apple & Co., however, enter a highly contested market. In the relatively small Austrian music market, eight streaming operators offer their services to the consumers (IFPI Austria 2013: 13) – not counted are the myriads of Internet radios, video streaming platforms such as YouTube, TapeTV, Vimeo and Hulu as well as the cloud-based music services of Amazon, Apple and Google.

Continue reading ‘Is Streaming the Next Big Thing? – The Business Models of Music Streaming Services’


Is Streaming the Next Big Thing? – An International Market Analysis

After years of recession optimism is back in the phonographic industry. In the current Recording Industry in Numbers by the International Federation of the Phonographic Industry (IFPI 2013) the first but small increase of 0.9 percent in global recorded music sales were reported since 1999.The decreases in CD sales and in other physical formats could be compensated by increases in digital music sales. The revenue streams of music streaming services seem to play a crucial role in the recovery. Spotify, Deezer & Co. report annually growing number of users, which makes streaming the fastest growing segment in the phonographic market.

In a series of blog posts entitled “Is Streaming the ‘Next Big Thing’?” I would like to highlight the boom of music streaming services and their business models. But I also ask whether and how labels and publishers as well as artists benefit from the growing streaming music market. In part 1 the development of the digital music market in different countries with special regard to the music streaming market is analysed in detail.

Continue reading ‘Is Streaming the Next Big Thing? – An International Market Analysis’


How Bad is Music File Sharing? – Part 25

The Joint Research Centre (JRC) of the EU Commission recently published a study entitled “Digital Music Consumption on the Internet: Evidence from Clickstream Data” with remarkable results. The authors, Luis Aguiar and Bertin Martens, concluded that music file sharing as well as music streaming have a significant positive impact on legal music downloads. The study is based on Clickstream data from Nielsen NetView. The database contains all the clicks of 25,000 Internet users in France, Germany, Italy, Spain and the United Kingdom for the calendar year 2011. In the following the main finding “(…) that digital music piracy does not displace legal music purchases in digital format” will be further investigated.

Continue reading ‘How Bad is Music File Sharing? – Part 25′


Music Experience and Behaviour in Young People in the UK

The study Music Experience and Behaviour in Young People is the third survey of its kind – after 2008 and 2009 – for 2011. After a presentation of the key findings of the study in the 3rd Vienna Music Business Research Days, it’s now an honour and pleasure to exclusively present the results of the current study on the blog. The 2011 study is based on a comprehensive online survey of 1,888 of 14-24 year olds across the UK. The main conclusion of the current research is “(…) that when it comes to music and young people, everything is different, and yet everything is still the same”; compared to 2008 and 2009.

The key findings of the 2011 study are:

  • The computer is no longer their main entertainment hub.
  • Digital music collections are still huge.
  • Digital music collections still contain 50 percent “free” music.
  • Ownership is still important.
  • Music is no longer the most popular entertainment type.
  • There remains a very clear “value gap”.
  • The popularity of file sharing has changed significantly.
  • The 14-25 years olds are prepared to pay for digital music.
  • But there are still challenges for streaming music online.
  • Digital music consumption is still complex.
  • They have a clear understanding and grasp of what copyright law is.

Please read further if you want to know more about the research results.

Continue reading ‘Music Experience and Behaviour in Young People in the UK’


Money from Music – a study on musicians’ revenue in the U.S.

Peter DiCola of Northwestern University School of Law and partner in the “Artists Revenue Streams”-project of the “Future of Music Coalition” has recently published a working paper entitled “Money from Music: Survey Evidence on Musicians’ Revenue and Lessons About Copyright Incentives”, which also will be published in the Arizona Law Review. Based on data of the “Artists Revenue Streams”-project, DiCola analyzes different income streams of musicians in the U.S. He highlights that musicians differ in earning money from music relying on several revenue sources. The main finding is that the largest revenue category for musician in the U.S. on average is live performance, which accounts for 28% of the overall annual income from music. Another important income source is teaching (22%), followed by salaries from orchestras, bands and chamber ensembles (19%) and session work (10%). Revenue from songwriting/composing and sound recordings is less important, accounting for 6% of the annual music income each.

For a summary of the study, please click here

Continue reading ‘Money from Music – a study on musicians’ revenue in the U.S.’


Music Business Research 2012 – in retrospective

Dear friends of the music business research blog. Thank you for visiting the blog in 2012. It was again a very eventful year for the music business/industry. The US and EU regulators cleared the merger of the recorded music arms of Universal and EMI. The Anschutz Group announced the selling of AEG, the world’s second largest live music company. Apple’s iTunes is virtually available worldwide after launching the music download portal in Russia, Turkey, Turkey, India and in other 52 countries. Music streaming service Spotify launched in Canada, Australia, New Zealand, Ireland and Luxembourg, operating now in 17 countries, whereas French based rival Deezer raised US$ 130 million from Warner Music Group’ owner Access Industries. And U.S. singer/songwriter Amanda Palmer managed to raise more than US$ 1.0 million for her new album on Kickstarter crowdfunding platform – to name only a few events.

However, from a music business research perspective, one of the highlights were the Third Vienna Music Business Research Days on “New Music Consumption Behaviour” held at University of Music and Performing Arts Vienna. Recent studies on music consumption behavior in the the UK, Austria and in the US were presented and the graduaded response scheme of the French authority for protection of copyrights on the Internet (HADOPI) was discussed. Further, the best paper of the Young Scholars’ workshop was awarded for the first time: “The ‘artepreneur’: A model for future success and personal fulfillment for artists” by Maike Engelmann, Lorenz Grünewald and Julia Heinrich of Hanover University of Music, Drama and Media. As a reward the paper was published in the October issue of the International Journal of Music Business Research (IJMBR), whose first issue was already published in April 2012:


Editorial by Dennis Collopy, Peter Tschmuck and Carsten Winter, pp. 4-6

Jari Salo: Customer Experience Management in the Music Industry Online Communities, pp. 7-30

Maike Engelmann, Lorenz Grünewald and Julia Heinrich: The New Artrepreneur – How Artists Can Thrive on a Networked Music Business, pp. 31-45._ (awarded best paper of the Young Scholars’ Workshop of the 3rd Vienna Music Business Research Days 2012)

Carsten Winter: How Media Prosumers Contribute to Social Innovation in Today’s New Networked Music Culture and Economy, pp. 46-73



Editorial by Peter Tschmuck and Dennis Collopy, pp. 4-6

Patrik Wikström: A Typology of Music Distribution Models, pp. 7-20

Pinie Wang: Music and Advertising. The Influence of Advertising and the Media on the Development of the Music Industry in the USA, pp. 21-43

Martin Kretschmer: Copyright Term Reversion and the “Use-It-Or-Lose-It” Principle, pp. 44-53

In the following you can find all academic theses & papers, which have been added for downloading in 2012. In addition find a list of important music business/industry studies and books published last year. You can also find a top-10-list of the most visited blog-posts and some more information.


Continue reading ‘Music Business Research 2012 – in retrospective’

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